By Wendy Van Sickle
Columbus, Ohio, Dec. 19 – Morgan Stanley Finance LLC priced $12.11 million of contingent income autocallable securities due June 18, 2020 linked to VanEck Vectors Oil Services ETF shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.5% if the ETF closes at or above its 75% downside threshold on the determination date that quarter.
The notes will be called at par plus the contingent coupon if the ETF closes at or above its initial level on any of the first nine determination dates.
The payout at maturity will be par unless the ETF finishes below its 75% downside threshold, in which case investors will be fully exposed to any losses.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent with distribution through Morgan Stanley Wealth Management.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
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| Underlying ETF: | VanEck Vectors Oil Services ETF
|
| Amount: | $12,107,350
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| Maturity: | June 18, 2020
|
| Coupon: | 10.5% per year, payable quarterly if ETF closes at or above downside threshold on determination date that quarter
|
| Price: | Par
|
| Payout at maturity: | If ETF finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline
|
| Call: | At par if ETF closes at or above initial level on first nine determination dates
|
| Initial level: | $24.42
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| Downside threshold: | $18.315, 75% of initial level
|
| Pricing date: | Dec. 15
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| Settlement date: | Dec. 20
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
|
| Fees: | 2.5%
|
| Cusip: | 61768K687
|
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